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Export Controls & Compliance: Why Should You Care

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What are the Export Administration Regulations?
Your Obligations Under the EAR & Why Do You Care?

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This material is confidential and proprietary to IntegTree LLC and may not be reproduced, published or disclosed to others without the express authorization of IntegTree LLC. IntegTree LLC is not a law firm and is not engaged in providing legal or other similar professional advice or services. In providing our services, IntegTree LLC attempts to provide its clients with “effective practices” in light of then-current laws and/or regulations. IntegTree’s services should not replace advice from your in-house or outside counsel or their opinions concerning company practices.

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Export Controls & Compliance: Why Should You Care

  1. 1. Copyright © IntegTree (2014) www.IntegTree.com Export controls: Export Administration Regulations Dr. Nitish Singh & Thomas J. Bussen (J.D./MBA) E-mail: ncsingh@integtree.com
  2. 2. Copyright © IntegTree (2014) www.IntegTree.com What are the Export Administration Regulations? • Products, software and technology that have a primarily commercial use fall under the EAR. • The EAR restricts : – Direct exports from the US; – Re-exports of U.S. products, software and technology from countries outside the US, and; – The disclosure of U.S. origin technology to non U.S. nationals, wherever situated • Technology is broadly defined to include any information for development, production or use of a product
  3. 3. Copyright © IntegTree (2014) www.IntegTree.com Your Obligations Under the EAR • Companies may need to: – Obtain a product license – Obtain a license to export to certain persons or entities identified by the U.S. – Screen for "red flags" prior to exporting – Ensure no exports are sent to embargoed or sanctioned countries, even indirectly
  4. 4. Copyright © IntegTree (2014) www.IntegTree.com Why Do You Care? • Every company that exports products, software or technology is subject to U.S. export control, as well as any transfers to non U.S. citizens - even those within the United States. • Companies subject to EAR must maintain internal controls to ensure compliance. • It may not be obvious that the EAR applies to you. Putting internal controls in place now may lead to significant savings later. • Fines are steep, and include serious criminal penalties Violations may also lead to "denial orders", prohibiting your organization from exporting for a period of time
  5. 5. Copyright © IntegTree (2014) www.IntegTree.com What Can You Do to Comply? • Evaluate whether your company is subject to export controls • Put in place internal compliance policies. – Communicate those policies, train your workers, and publish the policies in your code of code • Train your managers to handle their own investigations of licensure and transfer requirements and limitations, and identify red flags that signal export restrictions. • Teach your workforce to recognize the situations in which the EAR may apply to you.
  6. 6. Copyright © IntegTree (2014) www.IntegTree.com About the Authors • Integtree President Dr. Nitish Singh Associate Professor at Saint Louis University’s John Cook School of Business, has been at the forefront of ethics and compliance management and developed a University Certification program used by business executives and lawyers worldwide. • IntegTree Vice President Thomas J. Bussen holds a J.D., MBA, and Ethics and Compliance Certification from Saint Louis University’s John Cook School of Business, where he is adjunct faculty. A former litigator at an AV rated law firm, Thomas knows first hand the unforeseen problems that arise with inadequate risk management.
  7. 7. Copyright © IntegTree (2014) www.IntegTree.com Additional Resources • Join The Ethics & Compliance Professors complementary subscribers list by clicking here. • IntegTree specializes in the worldwide localization of ethics and compliance programs, regulatory and ethical training, and psychometric testing to provide deep insights to improve existing compliance programs.
  8. 8. Copyright © IntegTree (2014) www.IntegTree.com Disclaimer: • This material is confidential and proprietary to IntegTree LLC and may not be reproduced, published or disclosed to others without the express authorization of IntegTree LLC. IntegTree LLC is not a law firm and is not engaged in providing legal or other similar professional advice or services. In providing our services, IntegTree LLC attempts to provide its clients with “effective practices” in light of then-current laws and/or regulations. IntegTree’s services should not replace advice from your in-house or outside counsel or their opinions concerning company practices.

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